A strong revision of the EU ETS, but the future may bring impetus for further reform
The ETS will be much stronger after the Phase 4 revision. But further adjustments may be inevitable in the future, given ongoing developments in the climate/energy world. In the wee hours of November 9th, agreement[1] was reached in a trilogue session between the European Parliament and the Council over the European Commission’s proposed revision of […]
The EU ETS price may continue to be low for the foreseeable future
Carbon prices in the EU ETS have been low for a number of years and might remain at relatively low levels for the foreseeable future. That does not mean that the EU ETS, or the price signal it produces, is meaningless. Incentives to abate greenhouse gas emissions exist at any price level (it is just […]
Impact of the EU ETS across Member States and Sectors
The most recent official data[1] on the EU’s Emissions Trading System (EU ETS) show that greenhouse gas emissions dropped by about 2.7% in 2016. This reduction would go somewhat beyond the proposed annual reduction of the cap of 2.2% in the fourth trading period (2021-30). The EU ETS covers many different sectors, however, including the […]
In the final stages of revising the EU ETS, the Parliament takes one step back
Following the European Parliament’s vote on February 15th, giving final shape to the EU Emissions Trading System for the coming period 2021-2030, Milan Elkerbout pronounces in this new CEPS Commentary that we now know that the chamber as a whole prefers a more moderate approach to the EU’s ‘flagship climate policy’ than had been advanced […]
The EU Emissions Trading System after 2020
The recent report of the European Parliament’s Committee on Environment, Public Health and Food Safety (ENVI) on the revised EU Emissions Trading System (ETS) for the post-2020 period differs considerably from the European Commission’s proposal of summer 2015. Part of this difference may be explained by changes in the global climate policy landscape, most notably […]